JULI PLC: STILL TOUGH GOING

It is still quite a struggle for Juli PLC to get out of the loss league but at least, give it some credit, it continues to try and try.
Take the updates on six and nine months sent to the stock market last week, both show very clearly that Juli continues to roll up its sleeves against cost growth but alas, income not only continues to drop, it is more difficult absorbing finance costs.
However, the battle to curtail costs bore more fruits in the half year to June then lost some steam come the third quarter.
By half year, an 8.41% drop in cost of sale from N57.1m to N52.3m had in fact resulted in hope raising 8.57% increase in gross profit. This was because core business revenue dropped by only 2.82% to N82.7m from N85.1m.
But nine months to September ended with a closer call as core revenue dropped by 1.74% accompanied by a higher but comparatively closer 2.05% decrease in cost of sale.
Result? Compared to the gross profit increase by half year, a slight 1.03% drop was recorded from N38.8m to N38.4m.
Yet, Juli won the war too with administration and distribution expenses better in the nine months to September. This overhead actually dropped by 11.2% to N54.8m from N61.7m and that could have led increase in operating profit but it didn't.
Why? Because income from other sources took a great dive since the year and by September, was 95.3% down at N0.36m as against N7.74m same time in 2014. And because the overheard, though, reduced, was still too high for gross profit to absorb.
Hence operating loss came to N21.2m compared to N20.3m previously.
Then of course, finance cost entered the picture with 70.7% leap to N7.27m from N4.26m landing Juli PLC in 15.4% worse off in spite of its rolled up sleeves as loss before tax came to N28.4m  from N24.6m previously.
SO:
* For Juli PLC, no doubt the struggle continues.
* But, hey, couldn't it be possible for it to access less costly funds? That would have been a great boost to the struggle.

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